Updated: Dec 10, 2019
While the concept of achieving a balance between work and leisure has been traced back as far as the early 1800s, it wasn’t until the 1990s that the phrase “work-life balance” found its way into common parlance. Today, it's what everyone seems to want.
The same concept of balance can be applied to investing. But instead of a choice between work and leisure, investment balance is based on a mix of risk and return.
A balanced portfolio requires weighing an investor’s objectives, time horizon, risk tolerance and investment knowledge.